Apple accused of misleading advertising in Australia

updated 04:15 am EDT, Tue March 27, 2012

by MacNN Staff

Apple iPad not '4G' says ACCC, consumer watchdog

Apple has been accused of misleading advertising by Australia's consumer watchdog the ACCC over its promotion of the new iPad as having 4G capabilities, as no Australian telco currently supports the 4G radio in the new iPad. The ACCC plans to lodge an urgent case before a Melbourne court tomorrow over the issue. It aims to seek 'injunctions, pecuniary penalties, corrective advertising and refunds to consumers affected.'

A statement issued by the government authority reads:

'The ACCC alleges that Apple's recent promotion of the new "iPad with WiFi + 4G" is misleading because it represents to Australian consumers that the product "iPad with WiFi + 4G" can, with a SIM card, connect to a 4G mobile data network in Australia, when this is not the case.'

The ACCC also urged consumers to 'have a proper understanding of the mobile data networks which this iPad can directly access by a SIM card,' before they proceed with any purchase.

In the US, Apple has created two models of its 4G-capable iPad, one for AT&T and the other for Verizon. The new iPad for AT&T's 4G LTE network uses both the 700MHz and 2100MHz frequencies, while the Verizon 4G LTE network uses the 700MHz spectrum only. The only Australian telco running a limited 4G LTE network is Telstra, although this operates on the 1800MHz band. Telstra itself, and other European carriers have also made similar complaints about Apple's 4G marketing.

It is also quite likely, though unconfirmed, that Samsung Australia may have officially broached the matter with the ACCC. 'I guess consumers will, if they buy the new iPad under the impression that it is 4G, be soon disappointed in their buying decision,' Tyler McGee, Samsung Australia's VP of telecommunications recently told The Sydney Morning Herald. He argued that Samsung's Galaxy Tab 8.9 4G, now on sale in the country, is the only tablet on the market that properly supported 4G in Australia.

However, while on the surface the Australian government agency's case against Apple may appear to be strong, the definition of what constitutes 4G has become highly debatable, largely because of the marketing actions taken by telcos in the US. In the US, HSPA+ has long been marketed as 4G, when technically it is only an evolved variation of 3G. A true 4G network is technically supposed to deliver theoretical download speeds of 100Mbps by definition.

It is this confusion that raised its head in the recent switch from the iPhone 4S showing 3G on AT&T's network to now show 4G instead, following the recent update to iOS 5.1. At the time, AT&T stated 'The iPhone 4S operates on AT&T's 4G HSPA+ network and as such, it is only appropriate that people see '4G' on the phone when they are connected to HSPA+.'

However, in Australia, telcos have steered clear of calling HSPA+ networks 4G in their marketing. Telstra has had an HSPA+ network in operation for some time, which it has marketed correctly as 3.5G. It is double the theoretical bandwidth of HSPA and can support download speeds up to a theoretical maximum of 42Mbps. Although the new iPad can access data on the Telstra network at double the speed of the old model, Apple may have a difficult time convincing Australian authorities to accept the wider definition of HSPA+, which has become accepted in the US industry as a 4G service.

In the meantime, it is likely that Samsung executives will be sitting on the sidelines taking some enjoyment at Apple's discomfort, particularly as the two are locked in ongoing legal battles in the country over highly publicized patent infringement cases. [viaThe Sydney Morning Herald]

TAGS

TOTAL_COMMENTS Comments

...that consumers will be more disappointed by real issues like spam apps, fragmentation and an inability to easily upgrade to the next new operating system on a device that is no more than 12 months old

From what I can read on apple.com/au, Apple goes out of its way to make it clear that 4G isn't available everywhere, including a footnote saying "4G LTE is supported only on AT&T and Verizon networks in the US; and on Bell, Rogers and Telus networks in Canada. Data plans sold separately. See your carrier for details.". Of course they call the device "iPad with WiFi + 4G", because let's face it: the thing HAS 4G. Just not the carriers.

You could just as well sue Apple for including the word "WiFi", even if you don't have a WiFi router at home - FALSE ADVERTISING!! SUE THE b*******!

One of the things I've always liked most about Australia is that you can be in a public park, beside a nice little river full of crocodiles, and there will be no warning signs whatsoever. Furthermore, you can actually order a sandwich with a substance called "Vegemite" on it (which is far, far more dangerous than being eaten whole by a croc), again with absolutely NO warning that you are about to taste the single most despicable thing every created by man. It is so refreshing to visit a country that isn't a nanny-state - where personal responsibility is a part of life. I hope that this isn't a sign that Australia is on the way to becoming a country full of whining nancy-boys. :-)

If Samsung or Motorola were advertising their 4G phones as working with 4G, and they were the ones in the crosshairs, you'd all be defending them as well, and that people just need to read the fine print. Oh, wait, it's android, so no.

I'm sure that if Microsoft put out a large advertising campaign that talked about how their OS was hacker proof, and then, in tiny print on a web site, pointed out that this was only the case when the computer running windows was in a locked room with no internet connection, no lights, and no power, you all would be saying the same thing. "Read the fine print!"

Login Here

Now AAPL Stock: 153.14 ( + 2.59 )

Cirrus creates Lightning-headphone dev kit

Apple supplier Cirrus Logic has introduced a MFi-compliant new development kit for companies interested in using Cirrus' chips to create Lightning-based headphones, which -- regardless of whether rumors about Apple dropping the analog headphone jack in its iPhone this fall -- can offer advantages to music-loving iOS device users. The kit mentions some of the advantages of an all-digital headset or headphone connector, including higher-bitrate support, a more customizable experience, and support for power and data transfer into headphone hardware. Several companies already make Lightning headphones, and Apple has supported the concept since June 2014. http://bit.ly/29giiZj

Share

Developer453d

Apple Store app offers Procreate Pocket

The Apple Store app for iPhone, which periodically rewards users with free app gifts, is now offering the iPhone "Pocket" version of drawing app Procreate for those who have the free Apple Store app until July 28. Users who have redeemed the offer by navigating to the "Stores" tab of the app and swiping past the "iPhone Upgrade Program" banner to the "Procreate" banner have noted that only the limited Pocket (iPhone) version of the app is available free, even if the Apple Store app is installed and the offer redeemed on an iPad. The Pocket version currently sells for $3 on the iOS App Store. [32.4MB]

Share

453d

Porsche adds CarPlay to 2017 Panamera

Porsche has added a fifth model of vehicle to its CarPlay-supported lineup, announcing that the 2017 Panamera -- which will arrive in the US in January -- will include Apple's infotainment technology, and be seen on a giant 12.3-inch touchscreen as part of an all-new Porsche Communication Management system. The luxury sedan starts at $99,900 for the 4S model, and scales up to the Panamera Turbo, which sells for $146,900. Other vehicles that currently support CarPlay include the 2016 911 and the 2017 models of Macan, 718 Boxster, and 718 Cayman. The company did not mention support for Google's corresponding Android Auto in its announcement. http://bit.ly/295ZQ94

Share

Industry453d

Apple employees testing wheelchair features

New features included in the forthcoming watchOS 3 are being tested by Apple retail store employees, including a new activity-tracking feature that has been designed with wheelchair users in mind. The move is slightly unusual in that, while retail employees have previously been used to test pre-release versions of OS X and iOS, this marks the first time they've been included in the otherwise developer-only watchOS betas. The company is said to have gone to great lengths to modify the activity tracker for wheelchair users, including changing the "time to stand" notification to "time to roll" and including two wheelchair-centric workout apps. http://bit.ly/2955JDa

Share

Troubleshooting454d

SanDisk reveals two 256GB microSDXC cards

SanDisk has introduced two 256GB microSDXC cards. Arriving in August for $150, the Ultra microSDXC UHS-I Premium Edition card offers transfer speeds of up to 95MB/s for reading data. The Extreme microSDXC UHS-I card can read at a fast 100MB/s and write at up to 90MB/s, and will be shipping sometime in the fourth quarter for $200. http://bit.ly/294Q1If

Share

Upgrades/storage454d

Apple's third-quarter results due July 26

Apple has advised it will be issuing its third-quarter results on July 26, with a conference call to answer investor and analyst queries about the earnings set to take place later that day. The stream of the call will go live at 2pm PT (5pm ET) via Apple's investor site, with the results themselves expected to be released roughly 30 minutes before the call commences. Apple's guidance for the quarter put revenue at between $41 billion and $43 billion. http://apple.co/1oi1Pbm

Share

Investor455d

Twitter stickers slowly roll out to users

Twitter has introduced "stickers," allowing users to add extra graphical elements to their photos before uploading them to the micro-blogging service. A library of hundreds of accessories, props, and emoji will be available to use as stickers, which can be resized, rotated, and placed anywhere on the photograph. Images with stickers will also become searchable with viewers able to select a sticker to see how others use the same graphic in their own posts. Twitter advises stickers will be rolling out to users over the next few weeks, and will work on both the mobile apps and through the browser. http://bit.ly/29bbwUE